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Stock offering expected to raise $11.8 million

Observer staff

Sunday, January 17, 2016
4:27:10 EST PM

BioAmber's new succinic acid plant in Sarnia is shown in this file photo. The company recently announced several certifications for the plant, as well as a new offering to the market of 2.6 million shares of its common stock. (Sarnia Observer)

BioAmber, a Montreal-based renewable materials company that opened its first commercial scale production site in Sarnia, is offering 2.6 million shares of its common stock to the market.

The company said in a press release the stock is being priced at $5 a share, and is expected to raise $11.8 million for the company, after commissions and other fees, for working capital and other general corporate purposes.

The offering expected to close Jan. 21.

BioAmber also recently announced its bio-succinic acid plant in Sarnia, jointed owned with Mitsui and Co., had received several certification, including ISO 9001.

The certifications were granted following audits of the Sarnia plant in the fourth quarter of 2015.

“Obtaining these certifications within four months of start up is a remarkable achievement and a testament to the operational excellence practiced by our Sarnia team,” BioAmber CEO Jean-Francois Huc said in a press release.

The $141-million plant built at the Lanxess Bio-Industrial Park on Vidal Street in Sarnia began producing the building-block chemical succinic acid from corn in 2015.

The Sarnia site employs 60 workers.

Along with ISO 9001, an international standard governing quality management systems, the plant was certified in ISO 14001, a standard governing environmental management systems, as well as certifications in health and safety, and food safety management.

“These certifications demonstrate that BioAmber Sarnia is a reliable and professional supplier of bio-based chemicals,” Huc said.

“They also position us as an industry leader in the fast-growing field of sustainable chemicals production.”

Fabrice Orecchioni, BioAmber's chief operations officer, said the certifications are the culmination of three years of preparations, as well as the result of hard work by the company's Sarnia team.

“This is a significant operating milestone and further evidence of our ability to execute,” he said.

BioAmber formed approximately seven years ago, and had been demonstrating its technology for producing bio-succinic acid at a facility in France, before setting up production in Sarnia.

While the Sarnia plant was being built, the company was already making plans for a second production facility and looking at locations around North America.

That facility is expected to be larger than the Sarnia plant, and in the fall company officials said locations in Sarnia, as well as the U.S. were being considered.

Mike Hartmann, executive vice-president with BioAmber, said in an e-mail there is no update currently available on plans for the second plant, beyond what was previously stated by the company.

“I would assume our next update will be on our next conference call in March, after we release our Q4 and year-end numbers,” he added.